Arkansas Becomes First State to Upgrade to SAP S4HANA for Statewide Accounting

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The State of Arkansas has completed a major upgrade to its statewide accounting system, replacing the Arkansas Administrative Statewide Information System (AASIS) with SAP’s latest enterprise platform, S/4HANA.

According to the Arkansas Department of Finance and Administration (DFA), Arkansas is the first state government in the nation to complete the transition to the new platform.

Originally launched in 2001, AASIS processes nearly every financial transaction conducted by state government, including payroll for nearly 30,000 state employees, Medicaid payments and purchases ranging from office supplies to state vehicles. The DFA oversees the system’s daily operations.

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State officials said the upgrade is designed to improve efficiency by streamlining accounting, procurement and human resources functions across state government. The new platform is also expected to simplify vendor payments for the thousands of businesses that conduct business with the state while providing agencies with improved financial management tools and opportunities to reduce costs and enhance customer service.

The transition followed approximately two years of development, testing and employee training led by State Controller Andy Babbitt. Officials said the upgraded system will primarily benefit state employees and vendors through faster, more efficient processing of payroll and payments.

Governor Sarah Huckabee Sanders said the project supports the state’s efforts to improve government efficiency, while DFA officials credited state employees for completing the multi-year implementation.